SUPPORT
HB 5856 / SB 3959
Powering Illinois with a Future-Proof Energy Grid
How Does This
Benefit Illinois?
in Consumer Savings
Cost Savings from Power Blackouts
in Generated Economic Activity
Tons of Emissions Prevented by 2045
Reduces Costs
• Saves Illinois families and businesses $3 billion over the next 20 years
• Lowers costs for consumers by eliminating the need to import energy from other states
Increases Reliability
• Minimizes the economic impact caused by power outages, saving up to $7.3 billion by 2050
• Creates a Virtual Power Plant Program to increase the reliability of the Illinois power grid and reduce the likelihood of power blackouts
• Strengthens the Illinois power grid by building more large-scale energy storage
• Provides the resilience and reliability for a smooth transition to a renewable energy future
Boosts Economy
• Stimulates up to $16.3 billion in economic activity
• Generates up to 115,000 full-time employment years for Illinois workers
• Creates thousands of union jobs under project labor agreements
• Encourages progress on the nation-leading equity requirements mandated by CEJA
Meets Climate Goals
• Reduces energy emissions by 50 million tons by 2045 equivalent to removing 10.8 million cars off the road for one year
• Delivers an immediate solution to help Illinois stay on track to meet climate goals without sacrificing grid reliability or raising costs to consumers
• Supercharges clean energy development projects to ensure grid reliability as coal-fired power plants are retired
The datapoints on estimated savings were pulled from the study, “Cost and Benefit Analysis of Energy Storage Resource Deployment in Illinois.”
What is
HB 5856 / SB 3959?
HB 5856 / SB 3959 is an intelligent, strategic bill that proactively addresses impending energy challenges facing Illinois by creating 8,500 MW of clean energy storage. HB 5856 / SB 3959 continues the legacy of the landmark 2021 Climate and Equitable Jobs Act (CEJA), helping the state remain compliant with the bill’s clean energy mandates and spirit while laying the groundwork for future innovation.
Energy regulators forecast that Illinois will experience energy capacity shortfalls as early as 2030 as the state continues to decommission fossil fuel plants. If Illinois’ clean energy and storage development is not strengthened to close this gap, it will lead to increased likelihood of power outages and rising consumer costs.
Depending on a range of factors, Illinois could require between 9,000 and 15,000 MW of new capacity simply to maintain compliance with the NERC Reserve Margin guidelines, which are used to ensure a minimum level of regional grid reliability.
HB 5856 / SB 3959 accelerates clean energy development to better meet Illinois’ clean energy goals, increase power grid resilience, and reduce costs for consumers. The bill creates incentives and a robust statutory framework where none exist today to supercharge energy storage development and improve grid reliability while balancing industry growth and needs with consumer benefits.
In summary, HB 5856 / SB 3959 would improve the reliability of the Illinois energy grid that powers the Illinois economy while delivering net cost savings to Illinois consumers and economic benefits to Illinois between 2030 and 2049, further ushering in a golden age of future energy.
Approximately 75% of voters support incentives to build a more reliable grid through storage.
Almost 60% of voters support creating more clean energy jobs.
Energy cost savings are a priority for nearly 75% of Illinois voters.
Source: Illinois Voters Support for Energy Storage System Incentives, Impact Research, Conducted January 17-21, 2024. 607 likely voters.
Frequently Asked Questions
Is the proposed energy storage program needed now? YES. Energy developments take considerable time and resources to complete. By 2030, 8.4 GW of coal capacity will be retired. In the next five years, new solar capacity is expected to grow by less than 6.6 GW. Embarking on an energy storage program now is needed to hedge against the elevated reliability risks from power station retirements and delayed deployments of renewable energy resources. This visible gap, along with the ever-growing demand for electricity in the state, must be addressed. Illinois needs to accelerate the creation of clean energy sources and storage to optimize existing generation assets and support new projects coming online in the future.
What are the consumer cost impacts of the proposed energy storage program? Illinois consumers would realize a net reduction of $3 billion in utility bill savings between 2030 and 2049 through the proposed bill. Specifically, an energy storage resource program will yield long-term direct and indirect consumer cost benefits, such as saving $7/month over 20 years for the average single-family utility account served by Ameren Illinois and $4/month for the average ComEd single-family residential account. Additionally, the bill’s energy storage provisions will provide general economic value for Illinois consumers and industry by reducing power outages from one day in ten years to zero days in ten years, saving an estimated $7.3 billion by avoiding blackouts. Furthermore, the bill would add up to$16.3 billion in economic activity for Illinois. Lastly, a significant energy storage program will support the stability and resilience of the power grid and ensure a stable, smooth transition to a clean energy future.
How will 8,500 MW of energy storage help Illinois meet its capacity needs? Under the nationally celebrated Climate and Equitable Jobs Act (CEJA) of 2021, 8.4 GW of coal capacity will be retired by 2030. In the next five years, less than 6.6 GW of new solar capacity is expected to come online. In order to fill this gap while accommodating for the ever-growing demand for electricity, Illinois needs to accelerate the construction of energy storage to optimize existing wind and solar generation assets and support new renewable projects coming online in the future.
What is the general reason for all these storage provisions? CEJA supercharged Illinois’ solar industry. However, energy storage, a necessary tool for both the clean energy transition and for ensuring grid reliability, was not included in CEJA. To capitalize on CEJA’s incredible momentum and ensure Illinois stays on track to meet its urgent climate goals, HB 5856 / SB 3959 provides bulk storage targets and the ability to pair battery storage with residential and community solar. An energy storage standard, also known as an energy storage target, is critical for ensuring the power grid remains reliable and keeping costs to ratepayers as low as possible while simultaneously growing jobs in Illinois. The bill includes core energy storage programs that will ensure Illinois transitions to clean energy smoothly and that good paying jobs in the energy sector continue to grow throughout this transition. HB 5856 / SB 3959 helps achieve this through the creation of a Virtual Power Plant (VPP) Program. VPPs are created by aggregating resources, such as home rooftop solar paired with battery storage. Individually, these devices generate and store power, have backup power, and provide savings on energy bills. VPPs bring these devices together to become a network that injects vast amounts of power into the grid to reduce peak energy supply constraints and create a more resilient, reliable power grid, which can result in consumer savings. Data shows that Illinois may need as much as 15,000 MW of energy storage capacity by 2035 as the Renewable Portfolio Standard deploys more renewable energy on the grid, fossil fuel plants come offline, and electrification of data centers create more electricity needs. This bill ensures the state will have sufficient energy storage resources connected to the grid under the right timeline to keep the grid reliable during the energy transition. Energy storage technologies provide unique and essential benefits to the power grid and to taxpayers across all settings – at the utility-scale, community-scale, and in commercial and residential settings. HB 5856 / SB 3959 holistically address all of those unique settings and ensure that ratepayers can capture each of those unique benefits.
What is a Virtual Power Plant (VPP) Program? A Virtual Power Plant (VPP) Program is a network of decentralized energy resources that work together to balance energy supply and demand and provide grid services like a traditional power plant. VPPs can consist of hundreds or thousands of home and business solar and storage installations. VPPs can also allow residents and businesses participating in the program to receive compensation for selling excess energy or storage capacity. The goal of a VPP is to leverage a network of distributed energy resources (DERs), which can include residential, commercial, and community solar installations, to monitor, forecast, optimize, and exchange power. A VPP can help stabilize a power grid by providing redundancy, helping a power grid run more efficiently and increasing its resilience – two factors that can help save consumers money.
Do any states currently utilize a VPP? VPPs are the future of energy grids, and few states are positioned to step into the future with their power grid. Thanks to the current generation of Illinois energy leaders and the recent advancements in technology and investments made in the Illinois energy grid, Illinois is positioned to utilize and implement VPPs. Currently, California, Connecticut, Hawaii, Massachusetts, New York, Rhode Island, and Texas – as well as Puerto Rico – successfully operate VPPs. Illinois energy leaders have discussed and collaborated with leaders in states with VPPs to gather insights and learnings to help inform the creation and implementation of VPPs in Illinois.
Is this bill replacing CEJA? No. This bill enhances CEJA to build upon its incredible success. CEJA has been incredibly successful and has ushered in a golden age for renewable energy in the state of Illinois, generating significant economic value. Since 2017, residential solar grew 2,252% in Illinois, and commercial solar grew 1,871%.
Where can I see the bill in its entirety? You can find the full bill on the Illinois General Assembly’s website at URL. Additionally, an independent study was conducted on the impact of the bill. You can read the study here.
What's the impact of the bill? Read an independent study.
CEJA Workforce and Equity Provisions
In September 2021, Governor Pritzker signed CEJA. This nation-leading legislation positioned Illinois as a clean energy leader with provisions to create an equitable clean energy workforce.
The job creation programs created by CEJA were intentionally designed to benefit people who have historically faced barriers to enter the clean energy economy, whether that be financial status, time investment, education history, historic marginalization, or other factors. Collectively, the job training programs are designed to recruit from communities where jobs are needed most and equip trainees with the skills and resources needed to succeed and find a career. HB 5856 / SB 3959 will further stimulate the clean energy economy, leading to more job creation and growth for Illinoisans and further leverage the workforce programs established and bolstered by CEJA.
Clean Jobs Workforce Network Program Delivers a curriculum that prepares trainees for jobs in energy efficiency, solar and wind energy, energy storage, and electric vehicle industries. It also includes job readiness skills, certification test preparedness, the development of soft skills, and relevant technical skills.
Clean Energy Contractor Incubator Program Provides eligible contractors with access to low-cost capital, support for obtaining insurance, assistance registering to become vendors for state incentive programs, connections with firms hiring contractors and subcontractors, and other vital services. Participating contractors will receive training, mentoring and support to build their businesses, connect to projects, compete for capital, and execute clean energy-related project installations and subcontracts. The 13 incubators will be geographically distributed across Illinois. $21 million is allocated to this program each year, subject to appropriation.
Climate Works Pre-Apprenticeship Program Provides training to prepare people to succeed in apprenticeship programs in construction and building trades that are expected to see clean energy job growth. It will create a qualified, and diverse pipeline of clean energy workers, offering training, credentials, support with enrollment in apprenticeship programs after completion, barrier reduction services, and more. Subject to appropriation, $10 million per year will be allocated for the program, with an additional $6 million per year for distribution of Energy Transition Barrier Reduction Program services and funds.
Clean Energy Primes Contractor Accelerator Program Provides multi-year, one-on-one coaching to assist contractor participants in developing five-year business plans and growing their businesses. This includes review of monthly metrics and advice on achieving participant’s goals. Participating contractors will also be eligible for operational support grants and will have access to capital for upfront costs and pre-development funding. Participants will also receive mentorship, assistance for preparing for bids and Request for Proposal applications, assistance connection to state and federal programs, and more. $9 million is allocated to this program each year, subject to appropriation.
Energy Transition Navigator Program Provides outreach, education, and recruitment to eligible individuals to participate in CEJA workforce programs and collaborates with local job markets and workforce organizations to help place trainees in careers. $6 million is allocated to this program each year, subject to appropriation.
Solar Training Pipeline Program Establishes a pipeline, or pool of trained installers, for projects authorized under the Illinois Solar For All Program and the revised Renewable Portfolio Standards. This program includes funding for programs that provide training to individuals who are or were foster care alumni or returning citizens transitioning into the workforce. $3 million in funding is allocated to this program, subject to appropriation.
Returning Resident Clean Jobs Program Provides training within Illinois Department of Corrections (DOC) correctional facilities to prepare people for entry-level clean energy jobs. Participants will receive essential employability skills training as part of vocational or occupational training, and the training will lead to certifications or credentials that prepare candidates for employment. $6 million is allocated to this program each year, subject to appropriation.
Multi-Cultural Jobs Program Provides $4 million to fund multicultural jobs programs which are related to solar installation or similar sectors. The programming is run by diversity-focused community organizations that have a record of successfully delivering job training.
Craft Apprenticeship Program Provides $3 million in funding for accredited or recognized apprenticeship programs. Apprenticeship programs are offered for particular crafts, trades, or skills in the electric industry.
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475,500
Did you know more than 475,500 Illinois homes are powered by solar energy?
Clean energy industries are united in support for HB 5856 / SB 3959.
